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President Bola Tinubu has expressed concerns about the multitude of opinions surrounding the nation’s foreign exchange market, describing it as a “cacophony of postulations.”
In a message posted on his official X (formerly Twitter) account, he urged governors to trust the Central Bank of Nigeria (CBN) and allow the CBN governor, Yemi Cardoso, to fulfill his designated mandate of currency stabilization.
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Tinubu emphasized the need for designated institutions to effectively fulfill their roles.
He stated, “The ‘cacophony of postulations’ on the fluctuation of foreign exchange rates is adversely affecting the market. Not everyone can be an expert.”
Tinubu further stressed that if the CBN governor fails to carry out his mandate on currency stability, he would not hesitate to remove him from the system quickly.
Despite multiple policy reforms from the CBN, the foreign exchange market continues to grapple with currency stability.
The CBN has issued several circulars outlining different monetary policies to stabilize the naira. Recently, the CBN announced significant reforms in the foreign exchange market, signaling a move towards a market-driven exchange rate mechanism and potentially paving the way for a free float of the Naira.
However, the Naira continues to depreciate against the dollar, trading at N1503 to a dollar as of February 15. One of the recent circulars from the CBN included changes such as discontinuing the cap on the spread of interbank foreign exchange transactions and lifting restrictions on the sale of interbank proceeds.
